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Barclaycard end cash advances

Forgive me if this is old news but I only found out about it today.

I know, of course, that a cash advance on a credit card is one of the most expensive ways to raise cash and should only be used in an emergency. Well today I had an emergency and confidently tried to withdraw cash on my Platinum Barclaycard (current outstanding balance zero). I was amazed to learn that the facility has been withdrawn "on most Barclaycards" (according to the teller in my local branch) because "if someone's willing to pay the high interest rate and the handling fee, then it probably means that they're in financial difficulties".

Is this a widespread practice, or is it just Barclaycard?

Watson
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Comments

  • thesaint
    thesaint Posts: 4,324 Forumite
    Part of the Furniture Combo Breaker
    I do not know, I wish more issuers would do it though.
    People's 'emergencies' are rarely that.
    Well life is harsh, hug me don't reject me.
  • Watson
    Watson Posts: 239 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    thesaint wrote:
    People's 'emergencies' are rarely that.
    Easy enough to say if you're not faced with one. I appreciate the point, though.

    Watson
  • thesaint
    thesaint Posts: 4,324 Forumite
    Part of the Furniture Combo Breaker
    I like most people have had emergencies, but I can honestly say that I have never had to make a cash withdrawal on a credit card to avert disaster.
    Well life is harsh, hug me don't reject me.
  • peawack
    peawack Posts: 320 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    thesaint wrote:
    I like most people have had emergencies, but I can honestly say that I have never had to make a cash withdrawal on a credit card to avert disaster.

    That's you sorted. Then there's the rest of us !
    Peter
  • I do sometimes when I'm on holiday... I'm shocked that they have stopped, I always thought it was part of the VISA agreement that a card holder could withdraw cash..
    :santa2:
  • MABLE
    MABLE Posts: 4,145 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    So why on my BC statement does it quote 27.9 percent for cash advances if you unable to withdraw cash.
  • thesaint
    thesaint Posts: 4,324 Forumite
    Part of the Furniture Combo Breaker
    peawack wrote:
    That's you sorted. Then there's the rest of us !


    peawack, the point I am making is that cash advances really should be an emergency only situation.

    Now it depends on your description of an emergency ultimately as you will be the one paying the comparitively high fees.

    My description of an emergency is something that happens suddenly that couldn't have been forseen. Not something that should have been dealt with ages ago.

    It is only my opinion, but the rest of 'us' that you speak about have a different meaning.

    In approximately 16 years of having a card I have never withdrawn cash with my credit card, I definitely have made worse mistakes than doing this act though, and had emergencies.
    Well life is harsh, hug me don't reject me.
  • Watson
    Watson Posts: 239 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    What strikes me as odd about this is that Barclaycard are seemingly perfectly happy for me to take my card off to the high street and use it to buy £1500 worth of luxury goods, but won't allow me to use it to draw a third of that amount to pay some necessary bills.

    If I'm going to default on the payments, either immediately or later, they're going to lose money in either case; and if I make the payments, they're going to get more profit from me from the cash advance than from the credit purchases.

    Watson
  • Are you sure that you cannot withdraw money from a Cashpoint machine?

    Ltsb have the same idea with their Amex Rewards card where you cannot get cash over the counter but you can get up to £500 a day from the cashpoint.
  • Watson
    Watson Posts: 239 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    ejones999 wrote:
    Are you sure that you cannot withdraw money from a Cashpoint machine?
    Absolutely sure. After failing at the branch I tried three separate ATMs and - after going through the preliminary cash-withdrawal stages on the screen - was refused by all of them. Then I phoned Barclaycard and was told that the service had been completely withdrawn.

    Watson
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